(Bloomberg) — Bank of America Corp. formed a new wealth management banking and lending group as the firm expands its offering to affluent clients increasingly sought by rivals.
The new organization comprises about 3,500 employees and will be led by April Schneider, a spokesperson confirmed to Bloomberg News. The expanded group includes the bank’s wealth management banking specialists, loan officers, banking and lending product strategy as well as wealth-management client-care specialists, according to the company.
Banks have been competing for wealthy individuals, bolstering their advisory and lending practices to capture more assets on their balance sheet. Citigroup Inc. combined its consumer wealth-management and private-banking units under a single executive early last year amid the push.
Bank of America’s wealth and investment management group reported a 7% jump in revenue to $5.4 billion in the second quarter, buoyed by higher balances and higher interest rates. In July, the bank shuffled leaders across its wealth-management business and split its western regional unit into two, placing more emphasis on the California area, a key growth location.
Reuters reported the news earlier.
Schneider, who serves on the company’s management and operating committees, will report to Merrill president Andy Sieg and Katy Knox, president of Bank of America’s private bank.
“The new organization brings together banking and lending products, servicing and distribution. April is ideal to lead this area of strategic importance and her team will deliver the best experience for our Private Bank and Merrill clients,” Knox said in an emailed statement.